Kuningan Mas, LG Sinarmas sign IDR1.2T deal for data center

Kuningan Mas, LG Sinarmas sign IDR1.2T deal for data center

Kuningan Mas Gemilang (KMG) and LG Sinarmas Technology Solutions have signed a significant deal worth IDR1.2 trillion (approximately USD 87 billion) for the development of a data center project. The agreement involves KMG acting as the employer and LG Sinarmas as the contractor, covering a wide range of services including Long Lead Equipment (LLE), Mechanical, Electrical, and Plumbing (MEP), Information and Communication Technology (ICT), security, management systems, and integrated project control for the SMX01 data center project [3].

The transaction, which was patented on August 4, 2025, aims to capitalize on the growing demand for data centers in Indonesia. The deal is part of Sinarmas Group's broader strategy to capture growth opportunities in the digital market and diversify its revenue streams. This move is particularly significant given the rapid expansion of the data center industry in the country, which is expected to reach USD 1.15 billion by 2030, growing at a CAGR of 16.50% [1].

The agreement highlights the increasing importance of data centers in Indonesia, driven by factors such as the growing demand for cloud services, the need for robust infrastructure to support digital transformation, and the expansion of AI and machine learning applications. The deal also underscores the competitive landscape in the Indonesian data center market, with key players like DCI Indonesia and new entrants such as DayOne leading the way [1].

The transaction is expected to bring several benefits to Sinarmas Group, including capturing opportunities in the expanding digital market and diversifying its revenue sources. By investing in data center infrastructure, Sinarmas Group is positioning itself to meet the growing demand for data storage, processing, and connectivity services in Indonesia.

References:
[1] https://finance.yahoo.com/news/indonesia-data-center-colocation-market-082700320.html
[2] https://www.tradingview.com/news/zacks:a7035000d094b:0-will-amd-stock-climb-on-strong-data-center-revenues-in-q2-earnings/
[3] https://www.emitennews.com/news/grup-sinarmas-dssa-eksekusi-transaksi-rp122-t-intip-detailnya